New York Community Bancorp to Sell $5 Billion in Warehouse Loans to JPMorgan Chase Bank

By Sabela Ojea

New York Community Bancorp said it is selling $5 billion in warehouse loans to JPMorgan Chase Bank as the bank focuses its efforts to improve its financial position.

Regional lender New York Community Bancorp on Tuesday said that the deal would improve its capital ratio equity Tier 1 ratio--a key measure of balance-sheet strength--by 65 points, to 10.8%, as of March 31.

The agreement would also bolster New York Community Bancorp's liquidity profile as it plans to reinvest the proceeds of the sale into cash and securities, the bank said. On a pro-forma basis, the ratio of cash and securities to total assets is projected to rise to 24% from 20%.

The lender's loan-to-deposit ratio is expected to decline to 104% from 110% at the end of the first quarter of 2024.

"Consistent with my guidance during our recent earnings call, we are moving forward quickly to implement our strategic plan, which focuses on improving our capital, liquidity and loan-to-deposit metrics," Chief Executive Joseph Otting said.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

May 14, 2024 19:07 ET (23:07 GMT)

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